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Gas War Rages Between H-E-B and Walmart

The price of regular unleaded at the Walmart in the 5500 block of Sherwood Way at 6:30 p.m. on Oct. 25, 2017. (LIVE! Photo/Brandy Petty)

The price of gas at the Sam's Club in the 5500 block of Sherwood Way on Oct. 25, 2017 at 6 p.m. (LIVE! Photo/Brandy Petty)

By Brandy Petty | Oct. 25, 2017 7:25 pm

SAN ANGELO, TX — A gas price war rages as H-E-B introduces its new store across the street from the most trafficked Walmart Supercenter in San Angelo.

H-E-B opened their large supermarket across the street from Walmart and Sam’s Club in the 5500 block of Sherwood Way last week. The Sam Walton District was there years before H-E-B decided to make a move in the San Angelo area against them. But not before three Walmart Supercenters and two Walmart Neighborhood Markets opened here, greatly increasing the convenience and price competition for the old H-E-B at 3301 Sherwood Way.

Above: The price of regular unleaded at the new H-E-B in the 5500 block of Sherwood Way on Oct. 25, 2017 at 6 p.m. (LIVE! Photo/Brandy Petty)

Wednesday afternoon, the price of gas at the pump dipped to $1.92 per gallon at the new H-E-B. Walmart followed suit at their location near Southland and the Bluffs. Marketstreet at College Hills and Sunset Blvd. joined in too. Everywhere, it seemed, gas prices were dropping.

At the new H-E-B, code-named “San Angelo 2 – 734” in H-E-B corporate ops lingo, Unit Manager Nick George was all smiles. “We have a brand new store that has a beautiful gas station,” he said when asked if he fired the first shot in the gas war.

Above: The Alon gas station 19 block east of the epicenter of the gas war, in the 3600 block of Sherwood Way hasn't caught up to the low prices as on Oct 25, 2017 at 6:15 p.m. (LIVE! Photo/Brandy Petty)

When pressed, George said, “No comment. We are celebrating our grand opening and are excited to have this wonderful store with a gas station to serve San Angelo.”

Above: The old H-E-B in the 3300 block of Sherwood Way still had their price 14 cents higher than the store in the epicenter of the gas war on Oct. 25, 2017 at 6:20 p.m. (LIVE! Photo/Brandy Petty)

At Walmart, the employees at the pumps were more direct. The low prices are “because they just had their grand opening. So it’s ‘gas wars.’ That’s exactly it.” The Walmart attendant said that as the price at her Walmart dipped lower to $1.91 per gallon, firing another round in the gas war with H-E-B across the street.

At Sam’s Club nearby, the attendant there reiterated what he believed. “Our prices are low because we’re the best in town.” Sam’s Club was still at $1.92 per gallon.

George said the H-E-B Petro Team manages the gas pumps and he didn’t have any insight as to how low H-E-B will go to win the gas war. This is not George’s first H-E-B grand opening either.

He said the response to the new H-E-B and their grand opening is what he expected, based upon his experience. “There’s definitely lots of interest,” he said.

Above: The Walmart at 29th St. and N. Bryant Blvd. saw a significant drop in business today. It is not participating in the gas war. (LIVE! Photo/Joe Hyde)

Meanwhile, at the Walmart in 29th at N. Bryant St. the attendant there was worried. Far removed from the Sherwood Way gas price war, his price remained at $2.16 per gallon. “Our business has been slow all day long,” he said. Why? “Because there’s a gas war over there!”